Federal Housing Administration Loans
If you are a first-time homebuyer with limited cash for a down payment, then an FHA loan might be the right fit for you. Even first-time homebuyers who have suffered from bankruptcy may qualify for an FHA loan. An FHA home loan can be used to buy or refinance Single-Family Homes, 2 - 4 Unit Multi-Family Homes, Condominiums, Manufactured, and Mobile Homes.
FHA Loan
What is an FHA Loan?
The Federal Housing Administration — better known as the FHA, has helped people become homeowners since 1934. FHA loans are insured by the government and backed by the Federal Housing Administration.
FHA borrowers pay for mortgage insurance, which protects the lender from a loss if they default on the loan. The option of a low down payment and more lenient credit requirements can make FHA loans particularly attractive for first-time homebuyers. However, you don’t have to be a first-time homebuyer to qualify.
What do I need to start my FHA Loan Process?
Addresses
Be prepared to provide 2-year residents history and proof of payment, if applicable.
Proof of Income
- Wage Earner: Be prepared to provide 2-years of employment history through W-2's and pay stubs.
- Self-Employed: Be prepared to provide 2 years of tax returns.
Debt-To-Income (DTI) Ratio
Your DTI should be within program guidelines. For more information, contact New Dwelling Mortgage.
Employment Verification
Employment will be verified before closing.
Proof of Assets
Discuss minimum downpayment requirements with your Mortgage Broker, accompanied by 2-months of bank statements.
Credit Pull
Your Mortgage Broker will ask for your social security number and permission to pull your credit reports.
What are the Benefits of Getting an FHA Loan?
| | Credit score requirements are lower compared to other loans. |
| | The lender can accept a lower down payment. An FHA loan requires a minimum of 3.5% down (96.5% LTV). |
| | You could still qualify for an FHA loan if you have a bankruptcy or other financial issues in your history. |
| | Closing costs can be financed with a Seller's Concession. |
| | Gifts from family members are allowed. |
FHA Refinance Loan
FHA Refinance Loan
What is an FHA Streamline Refinance Loan?
FHA streamline refinance, a program that allows homeowners with FHA-backed mortgages to refinance with less time, hassle, and paperwork. With a streamlined refinance, you don't need to go through the FHA appraisal process again since the FHA has already valued the property.
The streamline program is only available to homeowners who already have FHA loans, but that doesn't mean you have to refinance with your existing lender. FHA loan requirements and fees may vary by lender.
- The basic requirements of a streamlined refinance are:The mortgage to be refinanced must already be FHA insured.
- The mortgage to be refinanced must be current (not delinquent).
- The refinance results in a net tangible benefit to the borrower. The definition of net tangible benefit varies based on the type of loan being refinanced and the new loan's interest rate and/or term.
Lenders may offer streamline refinances in several ways. Some lenders offer "no-cost" refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher interest rate on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs incurred on the transaction. FHA does not allow lenders to include closing costs in the new mortgage amount of a streamlined refinance. Get A Quote Today!
What are the Benefits of Getting an FHA Streamline Loan?
| | Lower Interest Rate. |
| | No Appraisal. |
| | No Income Verification. |
| | No Credit Check. |
Still have questions on the FHA Loan Process?
If you still have questions on the FHA Loan Process, please contact New Dwelling Mortgage at 1-844-317-3050, Monday through Friday from 9:00 am to 5:00 pm EST.